"Can foreign cash lift US housing?; Some are skeptical Fed plan can work" by Howard Schneider, Washington Post | February 16, 2010
WASHINGTON - As the US housing market boomed in the past decade and fueled a bull market in mortgage investments, Norway’s government-owned investment fund went along for the ride - and the fall.
After that fund recorded its worst-ever year in 2008, managers cited investments backed by US mortgages as a key culprit and began to cut back.
Now, US officials are looking to foreign government funds again. The Federal Reserve is scheduled at the end of March to halt its purchases of mortgage-backed securities, which could drive up the low interest rates that have helped the housing market show signs of life. The Fed is gambling that private investors will step in to buy the securities, helping to keep rates from spiking.
Is that what we are basing an economy on now? A GAMBLE?
Isn't that HOW WE GOT INTO THIS MESS?
Aren't these smart guys supposed to be FIXING things?
Senior officials in the Obama administration and at the Fed say they are counting, in part, on foreigners to keep the housing market funded.
The administration and Fed speaking with one voice, 'eh?
But
Sigh. Again with that word.
financial analysts and advisers familiar with foreign government funds, known as sovereign wealth funds, predict limited relief from abroad. “I don’t think it will be enough to fill the hole,’’ said Ajay Rajadhyaksha, an executive at Barclays Capital. Nor is Norway’s experience encouraging. Its government’s holdings of securities issued by the mortgage financier Fannie Mae declined from a 2007 high of more than $15 billion, at current exchange rates, to just more than $5 billion as of Sept. 30, 2009. Contracts with external investment mangers were slashed, and the fund’s guidelines refocused on individual stocks, real estate, and other deals that the fund’s staff had the expertise to vet.
Sovereign wealth funds are pools of money used by governments to make investments. The largest belong to big exporters such as China and the oil-rich monarchies of the Persian Gulf that accumulate trade surpluses.
And they are going to rush in after everyone got took and buy up s***?
These funds often set guidelines for the amount of money they will put into bonds or other fixed-income investments, including mortgage-backed securities.
NO ONE WANTS THOSE ANYMORE!
The FIRST QUESTION for ANYONE NOW is HOW AM I BEING RIPPED OFF in the deal?
Even if interest rates begin a modest rise, Rajadhyaksha said, he does not think it will be enough for sovereign wealth funds to direct large amounts of money away from alternatives, particularly US Treasury notes, that are less risky and not associated with the mortgage crisis.
“A lot of sovereign wealth funds have a vested interest in seeing the US stabilize,’’ said R.P. Eddy, whose Ergo consulting firm advises foreign funds on economic issues. “But some wealth fund coming in to save the day? That is not going to happen.’’
ONCE AGAIN this INSANE GOVERNMENT is choosing to BELIEVE ITS OWN LIES!
The securities issued by government-sponsored enterprises such as Fannie Mae and Freddie Mac are not debts of the US government, but do carry an implicit guarantee the companies won’t be allowed to default.
You were reaching for that wallet, weren't you?
In December, the government carried that a step further, saying it would not limit the amount of money made available to keep the firms solvent.
OPEN WIDE, taxpayers!!!
US officials said the goal was to reassure buyers of the companies’ mortgage securities that they were safe. “That’s particularly true for foreign investors,’’ said Eric Rosengren, president of the Federal Reserve Bank of Boston.
So WHEN are the AMERICAN PEOPLE going to COME FIRST?
--more--"
So they want the Chinese and the Arabs to save the housing market?
When is Israel going to start kicking some of the BILLIONS we give them each year?
Any other delusional requests by the Obama Fedministration?
"Foreign demand skids for Treasuries; Reduction could hike interest payments by US" by Martin Crutsinger, Associated Press | February 17, 2010
WASHINGTON - The government said yesterday that foreign demand for US Treasury securities fell by the largest amount on record in December with China reducing its holdings by $34.2 billion.
BAILING OUT THERE, too, huh?
The reductions in holdings, if they continue, could force the government to make higher interest payments at a time that it is running record federal deficits....
That means YOU, taxpayers!
I feel as though MY GOOD FELLOW CITIZENS are TAKING a BATH in my tears because this is SO SAD!!!!!
Globalism stinks!
The big drop in China’s holdings meant that it lost the top spot in terms of foreign ownership of US Treasuries, dropping to second place behind Japan....
Yes, our bestest buddy and banker all these years is a very smart and shrewd banker. If anyone can read the writing on the wall it is the Chinese.
China’s holdings are a result of the huge trade deficits the United States runs with China. The Chinese take the dollars Americans pay for Chinese products and invest them in Treasury securities and other dollar-denominated assets. American manufacturers argue that China’s huge dollar reserves reflect a strategy by the Chinese government to keep its currency artificially low against the dollar as a way to boost Chinese exports and dampen demand in China for American products.
Yeah, blame them for the mismanagement of our economy.
That ain't working no more (sic).
The Chinese didn't ship the factory jobs there, America.
--more--"
Maybe they will come here, 'eh, Americans?
Of course, TAXPAYER$ will have to ENTICE THEM, of you know what I mean!!!
"Foreign firms press for tax law change; Group says state levy is unfair and hinders investment, growth" by Robert Gavin, Globe Staff | March 3, 2010
Foreign corporations, which include some of the largest employers in Massachusetts, are pressing to change a state law they say taxes their subsidiaries unfairly and will discourage them from investing and expanding here.
I'm so sick of hearing business bitch when they get the breaks and consumers pay ever increasing taxes and fees.
Related: Those Are the (Tax) Breaks in Massachusetts
So which special interest is next with their hand out?
The law, adopted as part of a broader rewrite of corporate tax laws in 2008, makes Massachusetts one of the only states to tax royalties and interest paid by local subsidiaries to their corporate parents in other countries, according to the Organization for International Investment, a Washington lobbying group that represents the US subsidiaries. Taxing the payments raises about $40 million a year in additional revenue for the state, according to rough estimates by the state Department of Revenue.
Well, OUR TOWNS and CITIES are REALLY in a BIND NOW so I'm SURE you would NOT MIND being GOOD CORPORATE CITIZENS and KICKING IN the EXTRA LOOT!
Foreign-owned companies argue the law amounts to double taxation, since the corporate parents must pay taxes on royalties and interest in their home country.
Hey, CITIZENS are getting it SIX WAYS from SUNDAY, so... sorry, no sympathy!
They also say it violates the spirit of tax treaties between the US government and more than 60 other nations that are aimed at preventing double taxation.
The WHOLE STATE is a VIOLATION!
Look, I'm with you guys anyway. DO AWAY with the DAMN TAXES and SCALE BACK the GOVERNMENT BUILT upon UNHOLY LIES!!!
“This violates all international norms, and is such a disincentive to invest in Massachusetts,’’ said Alex Spitzer, senior vice president for tax at the US subsidiary of Nestle SA, the Swiss food products conglomerate that employs more than 400 people in Massachusetts. “We understand states are desperate for revenue, but this is just killing the golden goose.’’
Don't bring that mythical creature and illusion here then.
With that attitude, I DO NOT WANT THEM HERE!
I ONLY WANT GOOD CORPORATE CITIZENS!!
State lawmakers are considering legislation that would fix the problem for most foreign companies, but no action is imminent.
Did the state slaves also ask how high when the corporations said jump?
“It’s something we’ve been looking at,’’ said state Representative Charles Murphy, the chairman of the House Ways and Means Committee, which writes tax legislation. “It’s a legitimate issue in terms of tax equity, and it’s an issue that needs to be addressed.’’
(Blog editor's shoulders slump from sadness and the burden of taxes they continue to throw on the individual citizen)
Foreign-owned firms and their governments have been pressing to change the law for about a year. These companies employ about 170,000 people in Massachusetts, or about 6 percent of the state’s total employment, according to the investment group.
Among the largest here are Royal Phillips Electronics NV, a Dutch company that has its North American headquarters in Andover and employs nearly 5,000 in the state; Novartis AG, the Swiss pharmaceutical firm that employs nearly 2,400 here; and Royal Ahold NV, the Dutch firm that owns Stop & Shop supermarkets, employing about 22,000 full- and part-time employees in Massachusetts.
Also see: A $7 Billion Dollar Shot in the Arm
Stopping and Shopping at Shaw's
Novartis can't help us out, huh?
Probably be an interest payment to UBS anyway.
The tax treatment of foreign-owned companies is another example of government overreaching and putting the state at a competitive disadvantage, said John Regan, executive vice president at Associated Industries of Massachusetts. Firms frequently complain that lawmakers and policy makers don’t consider how business costs compare to other states.
Well, that last bit is true. Massachusetts sucks for business; however, the reason given for the whining is offensive and hurtful.
Regan said he’s frequently asked by lawmakers and Patrick administration officials about what would improve the climate for business and investment in Massachusetts. “I always say fix unemployment insurance and fix these tax issues,’’ Regan said. “And they always respond, ‘Other than that.’ ’’
Traditionally, Massachusetts and other states have allowed foreign subsidiaries to deduct the royalties and interest paid to parent companies from corporate income taxes. The problem began here when Massachusetts adopted a new system aimed at preventing domestic companies with operations in several states from avoiding taxes in Massachusetts by shifting income to states with lower taxes.
The law also included provisions to prevent foreign-owned corporations from shifting income out of the country to avoid taxes and eliminated long-accepted deductions used by many firms. Officials of foreign-owned companies say international tax treaties recognize those deductions as legitimate.
Why don't you guys go with them then, huh?
They support legislation that would allow the foreign subsidiaries to deduct royalty and interest payments if their home countries have tax treaties with the US government.
Everyone wants a piece of your wallet, America.
And if you-know-who is for it then it can not be good for you, dear readers:
"To help start-ups, give visas to foreign entrepreneurs
THE HIGH-TECH industry persuaded Congress years ago that the nation would benefit if companies could get visas for foreign workers with specialized skills.
So why was junior getting that degree?
Sigh.
No wonder they need to import engineers, scientists, physicists, etc.
But what about inventive foreigners who want to start their own cutting-edge companies in the United States?
The bill, sponsored by Senators John Kerry and Richard Lugar, an Indiana Republican, would allow up to 10,000 visas annually for foreigners who have a start-up proposal that is backed by at least $250,000 from a US investor. The first visa would be for two years. After that, a visa holder would gain permanent legal residency if the company has raised an additional $1 million, produced $1 million in revenues, or created at least five full-time jobs....
If strictly enforced by the US Bureau of Citizenship and Immigration Services, this measure would be hard to oppose even by diehard critics of the current system. Instead of taking jobs from others, recipients of the visas would be creating jobs for Americans.
Yeah, you will please pardon me if I doubt the editorial word on that.
Massachusetts would likely be a particular beneficiary of the program. Its colleges and universities enroll more than 30,000 foreign students. Getting the most talented to stay and pursue their careers in the United States can be challenging when home nations like China and India often provide inviting opportunities....
They are just following the AmeriKan corporations there.
